Why AI Helps, But Doesn’t Replace Strategic Thinking
People are obsessed with finding the “right prompt” that will magically give them the output they want. You see Reddit threads claiming that a specific set of prompts can produce a business plan, or LinkedIn posts boldly suggesting you don’t need firms like McKinsey anymore because of AI. It’s easy to see why this feels appealing — type a few words, get confident answers, and feel like you’re making progress.
But that framing also creates a false sense of security. It makes it sound like all you need to strategize is clever phrasing, rather than honest thinking about what your business is actually trying to achieve.
AI is a Helpful Tool — But Not a Strategist
AI tools like ChatGPT are genuinely useful when you use them for the right purposes, such as:
- organizing messy thoughts
- generating possible options
- speeding up research
- recognizing patterns across large volumes of information
These capabilities make information more accessible than ever, pulling threads together quickly without you having to bounce between sources. It can feel like a shortcut but it’s not strategy. It’s assistance.
Whether you’re refining an idea or exploring alternatives, AI responds to what you ask. If the question you give it doesn’t actually reflect the real constraints, goals, or priorities of your business, the answers , no matter how polished, won’t either.
When Companies Lean Too Hard on AI Alone
Some companies have publicly tried to replace roles with AI in the name of efficiency, only to find that technology alone couldn’t deliver on everything leadership hoped.
A headline example is Swedish fintech Klarna, which in 2023 laid off hundreds of customer service employees in favor of AI systems, including chatbots said to handle the work of 700 agents. Later, leadership acknowledged that this approach led to lower quality service, and the company began rehiring humans to restore customer experience. The Economic Times
Fast Company also documented how both Klarna and language-learning app Duolingo ran into backlash after pursuing “AI-first” strategies. While Duolingo hasn’t reversed course entirely, it has faced significant pushback from users after announcing moves to rely more on AI and reduce contractor roles. Fast Company
These cases aren’t about AI being useless. They’re about expectations meeting reality – where automation was intended to replace human functions that require judgment, empathy, or nuanced decision-making.
What AI Can’t Be Responsible For
AI doesn’t own the decisions you make. It’s not accountable. It can’t weigh your constraints against conflicting goals the way a human should. For example:
- understanding your specific business realities
- prioritizing one objective over another
- choosing what not to do
- bearing the consequences of those choices
- solving novel problems that don’t fit existing patterns
Strategy is about choice under constraint – choosing what matters most for your business, with your resources, risks, and goals in mind. That requires defining trade-offs, setting priorities, and living. Not just generating options.
AI can help you explore possibilities and structure your thinking, but it can’t decide which direction is right for you.
Strategy is Human Work
As a business owner, you’re the one who has to decide:
- what to focus on
- what to delay or drop
- what risks to take and why
- how your resources should be allocated
Those decisions don’t come from intelligence alone; they come from judgment, experience, and an understanding of your unique situation.
AI might help you put together a draft strategy outline or save time on research. But strategy isn’t a list of recommendations. It’s a coherent set of decisions that connect your goals to action. That’s something only you can define.
AI Can Sharpen Thinking, Not Replace It
Yes, AI can give you faster access to information. Yes, it can organize ideas and even simulate planning documents. But it doesn’t replace thinking, especially strategic thinking that unpacks goals, constraints, trade-offs, and accountability.
Thinking is a premium human product, shaped by judgment, experience, and structure. AI might help you get your foot in the door, but it won’t help you run with the strategy that actually makes your business better. At the end of the day, AI can give you answers, but you still have to choose which answers matter and how you’ll act on them.
